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The Hidden Costs of Bill Pay Report 2023

The 2023 Hidden Costs of Bill Pay report uses doxoINSIGHTS data combined with additional market research to provide a comprehensive look at America’s top concerns while managing and staying on top of bills.

The average household spent $1,268 on the hidden costs of bill pay this year.

These figures are 29% higher than they were for last year’s Hidden Costs of Bill Pay Report, which showed that the hidden costs of bill pay had an overall market impact of $128 billion, and an average annual cost per household of $986.

Mostly moderate increases contributed to this spike, with credit impacts seeing the biggest increase, which is not surprising given rising rates across the board. Last year credit fees cost consumers an average of $658, as compared to $945 in this year’s report.

What is doxo’s Hidden Costs of Bill Pay Report?

A comprehensive analysis provided each year of the top four hidden costs of bill pay that affect consumers:

  • Late fees and penalties
  • Bank overdraft fees
  • Identity fraud
  • Detrimental credit impacts

Similar to last year, the report draws on a mixture of proprietary, unique, anonymized bill pay data and authoritative sources like the Federal Reserve, the Consumer Financial Protection Bureau, and the Federal Trade Commission (FTC).

Top hidden costs impacting American households in 2023:

Boost your credit score by 35 points and you could save $945

Staying current on bills and debt payments is a primary factor for strengthening credit. doxo’s analysis shows that staying ahead on payments and improving a credit score by 35 points can save the average household $945 per year in interest expense.

The average U.S. household carries over $100,000 in revolving debt – between mortgages, auto loans, and credit cards, primarily – so boosting credit and qualifying for lower interest rates significantly reduces expenses.

Late fees cost the average household $181 last year

Missing or paying a bill late often incurs late fees, and 31% of households reported incurring one or more late fees.

This totaled $24 billion in household expenses, or $181 per household, as compared to a total of $20 billion, or $155 per household last year.

Overdraft fees have dwindled year-over-year but still cost about $75 per household

Banks charged consumers over $10 billion in overdraft fees this year, or about $75 per household. This is compared to a total of $16 billion, with an average of $119 per household, last year. According to a number of reports, in general, overdraft fees are dwindling.

31% of users surveyed reported some type of identity or payment data theft event within the year

The average household out of pocket costs for identity fraud amounts to $9 billion, or $67 per household a year, as compared to a total of $7 billion, or $54 dollars per household, last year.

These are just the direct costs, not including the time and expense consumers spend to restore and repair their identity records once compromised.

31% of the doxo user base reported some type of identity or payment data theft event, and 86% expressed concern about identity fraud impacting them. Not surprisingly, consumer anxiety about identity fraud risk is high, and media coverage of high-profile business data losses heightens awareness.


The Hidden Costs of Bill Pay

A comprehensive analysis provided each year of the top four hidden costs of bill pay that affect consumers: late fees, overdraft fees, identity fraud, and detrimental credit impacts.